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Brokers Vs Real Estate Agents: What You Need To Know

Brokers Vs Real Estate Agents: What You Need To Know

The real estate world can be a little confusing. You want to choose someone professional who will work on your behalf, but it seems like there are so many types of titles in real estate. Real Estate Brokers vs Real Estate Agents, REALTORS®, and more, we understand if you don’t know the difference between all of the right off the bat.

This article goes over the difference between brokers vs real estate agents to hopefully help you feel a little more prepared when you’re ready to buy or sell a home.

The Differences You Need To Know: Broker Vs Real Estate Agent

We know that sometimes people use brokers and real estate agents as interchangeable terms, but there are some key differences you should know. Let’s break them down and define each one.

Real Estate Agents

In simple terms, a real estate agent is someone who is licensed in the United States to help consumers buy or sell commercial or residential real estate. REALTORS® on the other hand, are people who are active members of National Association of Realtors (NAR) and are held to a very specific code of ethics and rules.

Both real estate agents and REALTORS® handle the day to day customer interactions. They are your first point of contact when it’s time to buy, sell, or invest. Though each day is different for the typical real estate agent, they have a large list of daily responsibilities they have to keep up with.

They keep up with local and regional market activity. They are constantly researching active, pending, and sold listings. Real estate agents have a never ending flow of paperwork including agreements, contracts, reports, and record documents. They have to plan and coordinate open houses, appointments, showings, meetings, both with clients and other agents.

They are also always creating marketing plans for their current listings, and learning how to promote their sellers’s homes while simultaneously managing emails and phones calls of new leads.

When it comes to broker vs real agent teams, real estate agents are constantly saving and making deals and making sure each and every client is satisfied.

Let’s move on to some key broker vs real estate agent differences, but remember that a main difference is that a broker is more of an overseer, while agents are on the ground working on your behalf.

Real Estate Brokers

A real estate broke has taken a step further than the agent level. They have gotten further real estate education and passed a broker’s license exam. Their extra coursework covers topics like ethics, contracts, insurance, even taxes. Typically brokers learn much more about the legal side of real estate and how the laws apply to operating a brokerage or real estate property management.

There are few types of real estate brokers that each have subtle differences in job duties. A principle/designated broker oversees licensed real estate agents at a particular firm and makes sure that everyone is in compliance with state and national real estate laws. They are also in charge of reviewing all contracts.

A principle broken is typically the most common type of broker as they have a lot more responsibilities including resolving transaction disputes. Just like real estate agents, they also get paid on commission, taking a small cut of commissions of the sales agents they supervise.

There are also managing brokers, who typically oversees day to day operations and manages new hires and administrative duties. An associate broker is a real estate professional who has a broker’s license but works underneath a managing broker. They are typically not responsible for supervising or managing other agents in their office and are often called a broker associate.


Now that you the difference between broker vs real estate agent, you can start your home buying or selling process with confidence. It never hurts you to learn as much as you can before you get involved with investing.

Remember the key difference is that while real estate agents have their real estate license, brokers have also taken the broker exam and can own their own brokerage or real estate firm and hire real estate agents to their company.

Another key difference for broker vs real estate agent is that most principle brokers don’t work directly with clients, so you can count on your real estate agent to have your back and assist you however you need.

When you’re looking to buy a home or you’re ready for a new house, let us here at Pinnacle Property help you. We’d love to sit down with you and answer your questions and help with whatever phase of life you’re in. Give us a call at (406) 298-5888 or contact us today.


Pinnacle Property of Montana

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    One thought on “Brokers Vs Real Estate Agents: What You Need To Know”

    • Home Arise

      December 8, 2018 at 11:42 am

      Thanks for sharing great tips, Real estate is attractive when compared to more traditional sources of income return. As a real estate expert I prefer to invest in real estate.

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